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Hyde Park Overview:
Situated to the south of the city is Hyde Park that includes data for following developments:
• The Connaught
• The Eliza
• The Hyde
• Hyde Park Towers
• Regency Hyde Park
• The Residences
It is incredible to imagine it took so long for an area like Hyde Park to become one of the hottest residential
locations. It is not a case of gentrification as Hyde Park has always been a very attractive location. I think there
has been a collective shift in what buyers want and demand. I think the appeal of city living has become a lot
more attractive over the past decade. Investors have played an important role in the city; in some instances
perhaps up to 75 % of some developments being leased.
Over the past couple of years baby boomers have become one of the most active buyer groups swapping
suburban homes for city apartments. I think Stockland really captured the imagination when developing “The
Hyde” of not just buyers but developers setting new benchmarks in residential living. The Residences and The
Eliza followed and continued the success story as demand for these three developments continue to forge
ahead as cashed up buyers demand top quality products.
As the pattern of investors selling up, this subsequently increases the owner occupier numbers especially baby
boomers that tend to buy for the long term which then further suppresses supply and increases pent-up demand.
Of course there will come a time when the property cycle reaches a ceiling which I believe this is approaching
even for some of the standout performers.
The turnover within these new developments has now reduced from post settlement highs and I would expect
to see lower turnover of these apartments; in 2015 there were 2 re-sales in The Eliza, 8 in The Residences which
I think will fall in 2016 and 5 in The Hyde that will remain constant.
The surrounding developments around Hyde Park have all benefitted from the uplift in prices brought about by
the general market, the differential in square metre rates and the increased demand that has been created in
the past five years from the increased exposure from more modern neighbours. Buyers who have been priced
out of the new developments can still live in Hyde Park in slightly older style developments. The number of sale
transactions within these developments has remained stable for the past two years.
There have been some stunning capital gains, the standouts include; an apartment in The Eliza realised a 48%
capital gain after being sold off plan for $1.76 million in 2011 and re-sold in 2015 for $2.6 million, the compound
annual growth rate (CAGA) works out to be 10% per annum.
In The Hyde a two bedroom apartment that traded for $1.315 million off the plan in 2006 recently traded in
January 2015 for $2.465 million an increase of 87%, the CAGA was 9% per annum. There were three apartments
around Hyde Park that achieved CAGA of 10%, two apartments in The Hyde and one apartment in The Eliza.
The Eliza remained on top of the highest average square metre rates for both 2014 and 2015 while The Hyde and
The Residences jostled for second and third place respectively.
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